China’s Mutual Fund Management Industry

ACBC_ Mr Minghui YangThe Australia China Business Council hosted Mr Minghui Yang, Chairman, China Asset Management Company and his delegation for a breakfast briefing on China’s funds management industry.

China AMC has around $90billion under management across institution clients and a retail client base greater than the Australian population!

 The Chinese economy has seen tremendous growth over the past 30 years following dramatic reforms. The so called “economic miracle” has been driven by exports as well as government investment. Now at a turning point, transfer to new structure focusing on domestic consumption and upgrade of industrial manufacturing.

A number if interesting investment opportunities were highlighted including:

  • health care which is only 5.6% of GDP vs 16% in the US
  • new agribusiness to support the huge population
  • high end equipment manufacturing
  • energy savings
  • new economy driven by mobile internet in China.
The capital markets in China only started in 1990 and are now the second largest in the world at 60 trillion RMB, and daily trading of 1-2 trillion. China is attracting the attention of international markets, with the FTSE starting to include in emerging markets indices and potential inclusion in the MSCI next year.
ACBC 3Interestingly, Hans Hendrischke, Professor of Chinese Business and Management, University of Sydney Business School noted there are only 5,000 companies listed on the Chinese stock market, predominately for for companies to interact.
From a retail investor perspective the regulations are still developing compared to markets like Australia, so access is via the growing managed funds industry.

For upcoming ACBC forums and event including Chinese Companies and the Australian Not-for-Profit sector on 13th August, and Significant Investor Visa update on 14th August, go to the ACBC website to register.

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